Sino Construction proposes acquisition of coal assets in Australia

SINGAPORE - Sino Construction, a Singapore-listed construction and civil engineering group, has entered a non-binding agreement with Guildford Coal to buy all the latter's coal assets in Australia.

The proposed transaction would cost Sino Construction US$25 million (S$31 million) as well as a royalty fee of 35 US cents per tonne of coal sold from the assets.

The royalty fee, to be paid to Guildford Coal, will apply for five years from the start of commercial production from the sale assets.

The coal resources generally comprise thermal, pulverized coal injection and coking coal, Sino Construction said in a filing to the Singapore Exchange on Friday.

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